GMR Infrastructure builds on overseas acquisition

GMR Infrastructure surged 3.43% to Rs 99.45 at 11:01 IST on BSE after the company said it has bought 50% stake in Netherlands-based power generation company InterGen N.V. for $1.1 billion.

The stock hit a high of Rs 102 and a low of Rs 94 so far during the day. The stock had a 52-week high of Rs 268.7 on 6 December 2007 and a 52-week low of Rs 95 on 24 June 2008.

The company has an equity capital of Rs 364.13 crore. Face value per share is Rs 2.

The current price of Rs 99.45 discounts its Q4 March 2008 annualised EPS of Rs 0.82, by a PE multiple of 121.28.

InterGen is a global power generation company with operations in five countries. It has ownership interest in 12 operating power plants, including one under construction, with a gross capacity of 8,258 megawatts and 4,822 megawatts of assets under development. The average age of its operating plants is 5.5 years. The company had a turnover of $1.65 billion for the year ended December 2007.

Ontario Teachers Pension Plan holds the balance 50% stake in InterGen.

On 6 June 2008, GMR Infrstructure’s 100% subsidiary GMR Energy entered into a power purchase agreement with Karnataka Power Transmission Corporation for sale of power for a period of 7 years.

In April 2008, GMR Energy acquired 5% stake in Homeland Mining and Energy SA, South Africa for an undisclosed amount.

In February 2008, a consortium of GMR Infrstructure bagged a contract from the government of Nepal to build a 300-megawatt hydroelectric project in Nepal.

GMR Infrastructure’s net profit rose 202% to Rs 37.36 crore on 181.65% rise in sales to Rs 61.99 crore in Q4 March 2008 over Q4 March 2007.

GMR Infrastructure generates, transmits and distributes electrical power. It also develops, maintains and operates airports and roads.